Below are the financial statements for XYZ Sdn Bhd as at 31 December 2020. The company is applying for a loan from EEE Bank. In order to evaluate the company as a potential debtor, the bank would like to compare the XYZ Sdn Bhd performance with the industry.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

Cash	20,000	Account payable	40,000
Marketable securities	55,000	Accrued expenses	20,000
Account receivables	30,000	Tax accrual	40,000
Prepaid expenses	15,000	Long term debt	80,000
Inventory	70,000	Common Stock	20,000
Net land and building	80,000	Retained earnings	70,000
	270,000		270,000

INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Sales	120,000
Cost of good sold	55,000
Gross Profit	65,000
Selling Expenses	30,000
Earning Before Interest and Tax	35,000
Interest Expense	8,200
Earning Before Tax	26,800
Tax Expenses	25,520
Profit After Tax	1,280

INDUSTRY AVERAGE RATIO

Current ratio	1.60 x	Average collection period	120 Days
Quick ratio	1.00 x	Inventory turnover	1.30 x
Debt ratio	40%	Return on assets	10%
Time interest earned	6.3 x	Net profit margin	22%

Based on the given financial statements:

1. Compute the indicates ratios as listed in industry average ratio for XYZ Sdn Bhd.
2. Analyse the overall performance of the company according to liquidity, activity, profitability and leverage ratios.